As a part of our sourcing policy and continuous improvement focus we engage with suppliers to improve practices on the ground and strengthen our supply chain and thereby ensure positive developments in the sustainable palm oil production journey. An important step towards improving our sustainability within economic, environmental and social areas of our business, we have invited our suppliers to join us along the journey. Our aim is to improve sustainability in our supply chain and ensure that our suppliers join us on this journey through close collaboration. Our approach to engagement includes conducting meetings and workshops, where we help suppliers to understand our Responsible Palm Oil Sourcing Policy and Code of Conduct and requirements to ensure compliance.

For our direct suppliers in Malaysia, we arrange site visits to Kernel Crushing Plants and the plantations and palm oil mills supplying the PK.

For Kernel Crushing Plants we provide training on food safety and product quality. In addition, we carry out safety inspections and provide on-site safety training and recommendations for improvements and how to address any non-conformities identified. In addition, we explain UP’s company policies specifically on our No Deforestation, No Peat and No Exploitation (NDPE) commitment as well as our suppliers code of conduct.

In Indonesia, we visit our third party FFB suppliers and have training sessions for smallholders and plasma farmers to improve good agricultural practices and promote sustainable palm oil policies and its implementation on ground. The smallholders were given training sessions in safe handling of pesticides with appropriate Personal Protective Equipment (PPE), effective use of pre-emergent herbicides for less chemical usage, integrated pest management (IPM) and mechanized harvesting in order to assist them with their agricultural interests. In addition, demonstration on fire combat procedures were carried out to further enhance the awareness of neighbouring smallholders case of fire incidence and were informed to contact UP for emergency assistance within close vicinity. We also explain UP’s company policies specifically on our No Deforestation, No Peat and No Exploitation (NDPE) commitment as well as our suppliers code of conduct.

We make assessments where gaps are identified and action plans including time bound plans are created to improve practices and monitor progress. Together we discuss findings and explain and promote policies on health and safety, workers' rights as well as our expectations on adherence to our code of conduct and policies of sustainable palm oil.

In the event that UP/Unitata becomes aware of a supplier violating or breaching the above policies or our Supplier Code of Conduct and thereby is viewed as a high-risk, UP/Unitata shall immediately request for corrective measures to be implemented with time-bound action plan to remediate such non-compliance within 60 days. We will moreover through dialogue and co-operation, encourage, and coach the supplier to resolve the non-compliance by providing necessary support to see how challenges can be overcome and implemented for positive change. If a supplier is unable or unwilling to take the necessary actions to conform to the expectations outlined in our policy, UP/Unitata will as a last resort terminate its commercial relationship with the supplier.

The process to engage and assess our suppliers as indicated in the flowchart below:

The outcome of suppliers’ assessment is tabulated below:

*As at december 2018.

The percentage of suppliers compliant to our Responsible Palm Oil Sourcing Policy is tabulated below:

Please log into the link to view the Assessment Questionnaire